Total Quality Management and Principles. Mahmoud Chapter 2 Total...Total Quality Management (TQM) is the application of quantitative methods and human resources to improve all the

Besterfield: Quality Control, 8th ed.. © 2009 Pearson Education, Upper Saddle River, NJ 07458.

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Quality Control

Total Quality Management and Principles


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2

Total Quality Management (TQM) is the

application of quantitative methods and

human resources to improve all the

processes within an organization and

exceed customer needs now and in the

future.

Introduction


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Total Quality Management

TQM

T M Q

(Total)

Make up of the whole

(Quality)

Degree of excellence a

product or service provides

(Management)

Act, art, or manner of handling, controlling,

directing, etc.


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The purpose of TQM is to provide a quality

product to customers, which will, in turn,

increase the productivity and lower cost

TQM allows the organization to achieve the

business objectives of profit and growth

Job Security. TQM creates a satisfying place

to work

TQM


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A company will not begin the transformation

to TQM until it is aware that the quality of the

product or service must be improved

TQM requires a cultural change

TQM is mandated by the customer

TQM is better way to run a business and

compete in domestic and world markets

Quality is first among equal cost and service

Improvements in quality lead directly to

increased productivity

TQM


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Basic Approach:

1. A committed and involved management to provide long-

term top-to-bottom organizational support

2. An unwavering focus on the customer

3. Effective involvement and utilization of the entire work force

4. Continuous improvement of the business and production

processes

5. Treating suppliers as partners

6. Establishing performance measures for the processes

TQM


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7 Clear Vision

Customer Satisfaction

Leadership

Process Orientation Focus on Quality

Employee Involvement

Supplier Partnering

Continuous Improvement

Business Growth

The Road to Business Growth

TQM


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Quality Element Previous State TQM

Definition Product-Oriented Customer-oriented

Priorities Second to service and cost

First among service and cost

Decisions Short-term Long-term

Emphasis Detection Prevention

Errors Operations System

Responsibility Quality Control Everyone

Prob. Solving Managers Teams

Procurement Price Life-cycle costs

Manager’s Role Plan, enforce etc Delegate, facilitate

New and Old Cultures

TQM


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Quality involves the design of the product and

the process

TQM is not something that will occur overnight,

it takes a long time to build the appropriate

emphasis and techniques into the culture

TQM


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Scope of (TQM)

TQM

Tools and

Techniques

Principles and

Practices


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ISO 9000

Tools and Techniques

Nonquantitative Quantitative

ISO 14000

Beanchmarking

Total Productive Maintenance

Management and Planning Tools

Quality by Design

SPC

Acceptance Sampling

Reliability

Experimental Design

Taguchi’s Quality Engineering

FMEA

QFD

Product Liability

Information Technology

Lean


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Principles and Practices

Leadership



Continuous Improvement

Supplier Partnership

Performance Measure


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The ability to positively influence people and

systems to have a meaningful impact and

achieve results

Leadership


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Recognize that the quality function is no more

responsible for product quality….Quality is the

responsibility of everyone in the organization

Commitment to quality becomes part of the

corporation’s business strategy and leads to

enhanced profit and an improved competitive

position

Leadership


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Leadership System:

Refers to how decisions are made,

communicated, and carried out at all levels;

mechanisms for leadership development, self-

examination, and improvement

Effectiveness of leadership system depends in

part on its organizational structure

Leadership


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Leadership Characteristics:

1. Give priority attention to external and internal customers and their needs

2. Empower, rather than control, subordinates

3. Emphasize improvement rather than maintenance

4. Emphasize prevention

5. Encourage collaboration rather than competition

6. Train and coach, rather than direct and supervise

7. Learn from problem

8. Improve communications

9. Demonstrate their commitment to quality

10.Choose suppliers on the basis of quality, not price

11.Establish organizational systems to support the quality effort

12.Encourage and recognize team effort

Leadership


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Leadership is essential during

every phase of the

implementation process and

particular at the start !!!!!

Leadership


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Begins with the Senior Management’s and the CEO’s

commitment

Involvement is required

Requires the education of Senior Management in TQM

concepts

Timing of the implementation process can be very

important

Formation of the Quality Council

Development of Core Values, Vision Statement, Mission

Statement, Quality Policy Statement

TQM Implementation


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Quality Council:

Composed of: CEO, the Senior Managers of

the functional areas, such as design,

marketing, finance, production, and quality;

and a coordinator or consultant

The coordinator will ensure that the team

members are empowered and know their

responsibilities

TQM Implementation


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Quality Council Duties:

1. Develop the core values, vision, mission, and

quality policy statements

2. Develop the strategic long-term plan with

goals and the annual quality improvement

program with objectives

3. Create the total education and training plan

4. Determine and continually monitor the cost

of poor quality

TQM Implementation


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Quality Council Duties:

5. Determine the performance measures for the

organization

6. Determine projects that improve the processes

7. Establish multifunctional project and

departmental or work group team

8. Establish or revise the recognition and reward

system

TQM Implementation


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Quality Statements:

Include the Vision Statement, Mission

Statement, and Quality Policy Statement

They are part of the strategy planning

process, which includes goals and objectives

Develop with input from all personnel

TQM Implementation


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Seven Steps to Strategy Planning:

Customer Needs

Customer Positioning

Predict the Future

Gap Analysis

Closing the Gap

Alignment

Implementation

TQM Implementation


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Who is the Customer?

External Customer -- those who receive the final products.

Occurs normally at the organizational level

Internal Customers -- occur at the process and cross-

departmental levels within the company

Identifying Customers:

What parts or products are produced?

Who uses our parts or products?

Who do we call, correspond/interact with?

Who supplied the inputs to the process?



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Checklist to improve satisfaction:

1. Who are my customers?

2. What do they need?

3. What are their measures and expectations?

4. How is my product or service?

5. Does my product or service exceed expectations?

6. How do I satisfy those needs?

7. What corrective action is necessary?

8. Are customers included on teams?

Customer Satisfaction – Cont’d.


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Customer Feedback:

1. Comment cards and formal surveys

2. Focus groups

3. Direct customer contacts

4. Field Intelligence

5. Study complaints

6. Monitoring the Internet



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Customer Complaints:

Dissatisfied customers rarely complain

Opportunity for quality improvement

Procedure for customer complaints, such as:

Accept complaints

Feedback complaint information to all people

Analyze complaints by doing effective work

Eliminate the root cause

Report results of all investigations and solutions to

everyone involved



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Basic Elements of Service Quality:

Organization

Customer

Communication

Front-Line People

Leadership



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……. any activity by which employees participate

in work-related decisions and improvement

activities, with the objectives of tapping the

creative energies of all employees and improving

their motivation



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Education and Training:

The cost of education and training for all

personnel is enormous and the time to achieve

it is lengthy

Educational needs vary by function area,

department and job

Quality Council may want to establish a project

team for the planning of the program

Employee Involvement – Cont’d.


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The Goal is to achieve perfection:

View work as a process

Make all processes effective, efficient, and

adaptable

Anticipate changing customer needs

Control in-process performance using measures

such as scrap reduction…

Maintain constructive dissatisfaction with the

present level of performance

Continuous Process Improvement


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The Goal is to achieve perfection:

Eliminate waste and rework

Investigate non-value added activities

Eliminate nonconformities

Use benchmarking to stay competitive

Hold gains

Lessons learned

Use tools such as SPC, design of experiments etc.



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PROCESS People

Equipment Method

Procedures Environment

Materials

FEEDBACK

OUTPUT Information

Data Product

Service, etc.

OUTCOMES

INPUT Materials

Money Information

Data, etc

CONDITIONS

Input/output process model


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Problem-Solving Method:

1. Identify the opportunity

2. Analyze the current process

3. Develop the optimal solution(s)

4. Implement changes

5. Study the results

6. Standardize the solution

7. Plan for the future



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Problem-Solving Method – Phase I:

Identify the opportunity

Identify and prioritize opportunities for

improvement

1. Is the problem important and not superficial

and why?

2. Will the problem solution contribute to the

attainment of goals?

3. Can be problem be defined clearly using

numbers?



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Form a team

Select the team leader and determine goals

and deadlines

Define the Scope

Develop a good problem statement that states

the facts, focuses on what is known and

emphasizes the impact on the customer.



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Develop a comprehensive charter that

specifies

Authority

Objective and scope

Composition

Direction and control

General



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Problem-Solving Method – Phase II:

Analyze the current process

Develop a process flow

Define the target performance measures

Collect all available data and information

Determine the root cause



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Problem-Solving Method – Phase III:

Develop the optimal solution

Determine possible solutions

Judge possible solutions for greatest

potential for success

Categorize solutions as short range

or long range



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Problem-Solving Method – Phase IV:

Implement Changes

Prepare the implementation plan

Obtain approval for the plan

Develop implementation plan report



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Problem-Solving Method – Phase V:

Study the results

Take measurements

Evaluate results

Identify unforeseen problems as a result of

the changes



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Problem-Solving Method – Phase VI:

Standardize the Solution

Institutionalize the change

Certify the quality peripherals

Certify operators

Cross-training



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Problem-Solving Method – Phase VII:

Plan for the Future

Conduct regular scheduled reviews

Establish systems to identify areas for future

improvement

Incorporate process measurement and team

problem solving in all work activities

Reduce complexity, variation and out-of-

control processes



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On average 40% or more of product or service

cost is due to procurement. The supplier should

be treated as an extension of the process.

This requires:

Long term relationship with supplier(s)

Good supplier management



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Supplier Selection Criteria:

Quality of parts/raw materials Certified?

On-time delivery

100% delivery

Technology



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Service

Billing Errors

Sales per square feet

Activity time

Production

Yield

Inventory turns

On-time delivery

Performance Measurements


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Cost of Poor Quality:

Prevention Costs:

Costs of minimizing failure and appraisal

costs

Appraisal Costs:

Costs of determining the degree of

conformance to quality requirements



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Cost of Poor Quality:

Internal Failure Costs:

Costs resulting from defects found before the

customer receives the product or service

External Failure Costs:

Costs resulting from defects found after the

customer receives the product or service



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Optimum Cost of Poor Quality

Total Quality Costs = Internal and External

Failure Costs + Prevention and Appraisal Costs

Poor quality usually is a result of low investment

in prevention and appraisal

This results in an increase in the failure costs



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Optimum Cost of Poor Quality

As more money/effort is invested in

prevention and appraisal, the quality

improves which in turn drives the failure

costs down.

The total costs of poor quality is at its lowest

when the failure costs are non existent.



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Unacceptable

Poor

Good

Best

High loss

Loss (to producing organization, customer, and society)

Low loss

Frequency

Lower Target Upper

Specification

Target-oriented quality yields more product in the “best” category

Target-oriented quality brings product toward the target value

Conformance-oriented quality keeps products within 3 standard deviations

L = D2C where

L = loss to society

D = distance from target value

C = cost of deviation

Taguchi’s Loss Function


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1. Create consistency of purpose

2. Lead to promote change

3. Build quality into the product; stop

depending on inspection

4. Build long term relationships based on

performance, not price

5. Continuously improve product, quality, and

service

Deming’s 14 Points


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6. Start training

7. Emphasize leadership

8. Drive out fear

9. Break down barriers between departments

10. Stop haranguing workers



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11. Support, help, improve

12. Remove barriers to pride in work

13. Institute a vigorous program of education

and self-improvement

14. Put everybody in the company to work on

the transformation


Documents

Total Quality Management and Principles. Mahmoud Chapter 2 Total...Total Quality Management (TQM) is the application of quantitative methods and human resources to improve all the